1/22/2024 0 Comments Discovery credit card pre approvalIf you’ve come into extra income after a year, that could be a great time to request an increase.Īfter graduation, contact Discover and ask if they can upgrade the account status from “student” to “graduated.” This might automatically qualify the cardholder for a higher credit limit, especially if you’ve landed a job with a steady income after graduation. This means consistently making on-time monthly payments and maintaining a low balance. Make sure your account is in good standing, too. Discover Student CardsĬardholders with Discover student credit cards should wait at least a year before requesting a credit limit increase. Be sure to report any raises you receive if you’re hoping for a credit limit increase (otherwise, you can ignore the prompts). Cardholders may see a pop-up message when they log in online, prompting them to report changes in employment status. Issuers are likely to consider the following when deciding whether to increase a credit limit:ĭiscover might automatically increase your credit limit if your account is in good standing or if you report increased income. Unless your information changes drastically, there’s not much point requesting a higher limit sooner. This estimate factors into your credit limit. When you first opened a Discover credit card, the issuer likely used your financial information-including data like current annual income and monthly rent-to estimate how much borrowing power you qualify for. It’s wise to wait at least six months after opening a new account before requesting a credit limit increase. Discover notes that more than 95% of people who apply for a credit limit increase online get an instant decision. You’ll have to enter your annual income and your monthly housing payment. Cardholders can also log in to their online accounts and select “Card Services” then “Credit Line Increase” to make a request. Once you’ve decided to inquire about a higher credit limit, contact Discover directly by calling the number on the back of your credit card. How To Increase Your Discover Credit Limit Ask Discover if they will perform a hard pull on your credit before you request an increase. Too many hard credit checks in a short period of time can dock points off your credit score. Credit card issuers sometimes perform a hard credit check to determine whether a cardholder is eligible for a credit limit increase. This can spiral into credit card debt that’s extremely difficult to pay off, plus a damaged credit score. Spending more than you can afford can result in missed payments, revolving balances and costly interest charges. Having more available credit sometimes creates an illusion that money is available to spend with no consequence. The temptation to spend more than you can afford.Let’s review the disadvantages of getting a higher credit limit: Increasing a credit card limit has its risks. When lending large amounts of money, lenders like to see a history of responsible borrowing.ĭisadvantages of Increasing Your Credit Limit Improving your relationship with Discover might raise your chances of approval for a premium credit card from other issuers or of qualifying for low-interest rates on a big loan or mortgage down the road. Improving credit standing for premium financial products and low rates in the future. Make sure you can pay the purchase off within the same billing cycle you make it to avoid interest charges. A higher credit limit means more wiggle room for large purchases, like appliances or exciting vacations. Having more funds for a large purchase.The lower your utilization, the better your credit score will be. A higher credit limit means lower utilization if your spending stays the same. Credit utilization greatly impacts credit score, making up 30% of a FICO Score. Lowering your credit utilization rate.Let’s look at the advantages of having a higher credit limit: Advantages of Increasing Your Credit Limit That said, receiving a higher credit limit on your Discover credit card can be a positive experience, so long as you spend responsibly and make payments on time. Spending more than you’re bringing in is a slippery slope, because when you can’t pay in full each month, you risk increasingly expensive interest charges. A credit limit increase shouldn’t be viewed as a license to spend more-and certainly not as permission to overspend. Before seeking an increase from Discover, make sure you’re doing so for the right reasons.
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